Minutes of the Regular Meeting of
March 18, 2004
Present: Ralph Gold, chairman, Roger Kane, Sally Hart, Tom Bechtle, Celia Senzer, members. David Grossman and Anne Kosciusko, alternates. Board of Education, Barbara Gold, chairman, Wynne Kavanaugh, Phil Hart. Board of Selectmen, Gordon Ridgway, first selectman, and K.C. Baird, selectman.
Chairman Ralph Gold asked David Grossman to sit for Earl Brecher, who was absent.
The minutes of the meeting of February 19 and the special meeting of March 11 were approved unanimously as presented.
Gordon Ridgway reported that $15,000 in seed money for an after school program at CCS beginning in the fall of 2004 has been made available through a federal grant received by Region I last year. Charges to the parents in the first year would be banked and used to help fund the second year. There would be no impact on the FY 2005 budget. This is the basis on which discussions about the program are currently proceeding.
Barbara Gold noted a few minor corrections in the budget presented March 11. Phil Hart reported that negotiations with the non-classified staff had begun and will go to mediation.
Ralph Gold gave a general overview of the budget. He said that the BOE has in the past budgeted for the worst case in the face of salary and benefit changes. He urged that the board consider a mid-point for such estimates rather than taxing for the maximum amount which might not be needed. He said that in the discussions leading up to passage of the FY 2004 budget, the Board of Finance had proposed setting aside an agreed-upon amount which would cover the worst case in the Municipal Reserve. The BOE would access these funds after presenting their case for an increase to the Board of Finance.
Ralph suggested that draws on the contingency fund had begun to show a pattern: Chiefly the transfers were going to highway costs and snow removal. Since those lines have been increased to be more realistic in the FY 2005 budget, could not some thought be given to reducing the contingency fund from its present level of $30,000. It has been at this level for 10 years or more.
David Grossman noted that the increases proposed by both boards are in excess of the 1.9% COLA increase the federal government is giving to social security recipients for the current year. Tom Bechtle pointed out the apparent rigidity of the fixed costs particularly in the education budget. Grossman said that discretionary costs Òhave a way of becoming fixed costs.Ó
Ralph said ÒThere is not an evident solution that provides services at the level we have customarily met.Ó
The clerk reviewed the revenues estimated for FY 2005. The total non-tax revenue appears to be $435,761, without any contribution from the fund balance or an amount for the tax levy. State grants are low, essentially unchanged from FY 2004. Given that the expenditures for FY 2005 are, at this point, $5,247,644, and given that MoodyÕs has shown concern about not drawing down our fund balance much over $50,000, a possible scenario could be:
Non-tax revenue $435,761
Undesignated Fund Balance 50,000
Amount to be taxed 4,761,883
TOTAL 5,247,644
Although this is a 9% increase in the dollar amount taxed over FY 2004, the Grand List of October 2003 showed a hefty 4.1% increase which goes a long way to ameliorate the tax rate impact of the upward change. In fact, when the budget mill (98% of 227,114, the full mill) is divided into the $4,761,883, the mill rate is 21.9. This is an increase of less than one mill over the 20.5 rate for FY 2004. The rate increase is 4.4%. Some downward pressure is expected on the expenditure budget, so this may go lower.
Grossman moved and Celia Senzer seconded a motion to make the following transfers in the General Fund, FY 2004, budget:
FROM: 01-466-100 Contingency $19,400
TO INCREASE:
01-425-620-50 Snow Removal $12,000
01-426-630-16 Vehicle Maintenance 3,000
01-417-542-03 Land Use AdminÕr 3,000
01-417-542-04 Land Use Clerk 1,000
01-417-543-10 Land Use mileage 400
The VOTE to approve was unanimous.
There is now $9,600 left in the contingency fund for FY 2004.
The meeting adjourned until the next regular meeting on April 15.
Lisa Lansing
Clerk